Buy IndusInd Bank, target price Rs 1375: JM Financial

JM Financial has buy call on IndusInd Bank with a target price of Rs 1375. The current market price of IndusInd Bank is Rs 1119.45. Time period given by analyst is a year when IndusInd Bank price can reach defined target.

IndusInd Bank, incorporated in the year 1994, is a banking company (having a market cap of Rs 85503.65 Crore).

IndusInd Bank key Products/Revenue Segments include Interest & Discount on Advances & Bills, Income From Investment, Interest On Balances with RBI and Other Inter-Bank Funds and Interest for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 12174.31 Crore, up 5.55 % from last quarter Total Income of Rs 11533.89 Crore and up 24.67 % from last year same quarter Total Income of Rs 9764.91 Crore. The bank has reported net profit after tax of Rs 2043.44 Crore in latest quarter.

Investment Rationale
The stock has corrected sharply given that term extension for MD & CEO has been lesser than market expectations, the brokerage believes core performance for the bank continues to trend in the right direction. Currently, stock is trading at attractive valuations of 1.5x FY25e BVPS (for expected RoEs of 16.7% FY25e) and hence makes for an attractive entry point.

Promoter/FII Holdings
Promoters held 16.5 per cent stake in the company as of 31-Mar-2023, while FIIs owned 42.16 per cent, DIIs 26.38 per cent.